EXPRESSION OF INTEREST (EOI) FOR EMPANELMENT OF INSURANCE BROKERS FOR GROUP PERSONAL ACCIDENT & GROUP TERM LIFE INSURANCE POLICIES FOR SALARY ACCOUNT HOLDERS OF STATE BANK OF INDIA EOI REFERENCE NO. SBI/PB/G&ITU/2018-19/185 DATE: 19/12/2018 STATE BANK OF INDIA, CORPORATE, GOVERNMENT & INSTITUITONAL TIE-UPS DEPARTMENT, CORPORATE CENTRE, 13 TH FLOOR, STATE BANK BHAVAN, MADAME CAMA ROAD, NARIMAN POINT MUMBAI 400 021
-1- EXPRESSION OF INTEREST (EOI) FOR EMPANELMENT OF INSURANCE BROKERS State Bank of India Government & Institutional Tie-ups Department Personal Banking Business Units Corporate Centre, 6th floor, State Bank Bhawan Madame Cama Road, Mumbai 400021 I: Introduction & Instructions State Bank of India (SBI), a body corporate constituted under State Bank of India Act, 1955 having its Corporate Centre at Madame Cama Road, Mumbai- 400021, hereinafter called Bank intends to empanel Insurance Broker/s for procurement and managing Group Personal Accident (GPA) and Group Term Life Insurance (GTL) cover to be extended to Salary package account holders. Bank invites tenders from IRDA licensed Insurance Broker companies operating in India for engagement of Insurance Broker with its Corporate, Government & Institutional Tie up department for assisting the Bank in pre-placement, placement & post placement services of insurance policies for Bank's Salary Package accounts and related works. Brokers who fulfil the Pre-qualification criteria as given below are per Annexure A (Part A) are eligible to participate in this tender. Brokers are also required to submit the detailed information about the firm as per Annexure C. The Expression of Interest (EOI) is available on Bank s website (https://bank.sbi) in Procurement section. Interested bidders are requested to refer to the said EOI. They have to submit the required documents strictly as per provisions of the EOI document. The schedule of the bidding process is as under: 1. Date of commencement of bidding process 19 th December 2018 2. Last date for bid submission 12:30 hrs on 26 th December 2018 3. Date and Time for opening of bid 11:30 hrs on 27 th December 2018 4. Tentative date for Presentation by shortlisted brokers, based on scores 15:30 hrs on 27 th or 28 th December 2018 5. Date for final empanelment of broker/s 28 th December 2018
-2-2. To be considered for empanelment by the Bank, the Insurance broking Firms/ Companies should meet the following criteria: a) This invitation is open only to well-established and reputed registered Insurance Broking Firm/ Company that are incorporated or registered under the Companies Act / Partnership Act as per their constitution. b) The interested broking firms must meet the prequalifying criteria to become eligible to participate in bidding process. c) The Firms/ Companies should have been in existence in India for a period of at least 7 years as on 31/03/2018, in the area of Insurance broking, i.e. must be registered/ issued license by Insurance Regulatory and Development Authority (IRDA) for the said purpose prior to 1 st April 2011. d) The Insurance Broking Firms/ Companies with experience in handling Insurance policies for Public Sector Banks in India would be given preference, in empanelment. e) The intending firm must specify the nature of services that the broking firm/ company shall be rendering to the Bank, if assigned the Job. f) The Insurance Broker Firms/Companies should meet criteria fixed by the Bank internally, such as experience in handling similar projects, Employee base, Pan-India presence, experienced professionals in its employment etc. g) All notices and correspondence to the bidder(s) shall be sent by email only, till finalization of tender takes place. Hence, the bidders are required to ensure that email address provided by them is valid. h) Bidders can seek clarification regarding the tender/ insurance policy by writing email at dgm.citu@sbi.co.in. Any clarification on queries raised by any bidder will be communicated to all bidders. i) The eligibility of the Broking firms would be decided on the basis of score obtained by them on the parameter as mentioned in Annexure A.
-3- II: SCOPE OF WORK 1. The role of the insurance broking firm/company would be advisory in nature in respect of choice of insurance company from whom the GPA insurance policy is to be obtained or the terms, conditions and coverage of insurance policy. The advice of the firm/company would not be binding on the Bank. The strategy of the Bank would be maximum risk coverage with minimum premium outgo. 2. The scope of work for the Insurance Broking firms/ companies covers the following: a) Customization, design and placement of Insurance Policy based on Salary package product offerings. b) Insurance Broker would be functioning as a Strategic Consultant for SBI and would be assisting the Bank in pre-placement, placement and post placement Process of the Insurance program. c) Facilitate Insurer meetings & assist in negotiating the best price from the Insurer/insurers. d) Support for expeditious settlement of claims. e) Claim monitoring & Periodic Review. f) Validation and Forecasting of Additional Coverage Benefits. g) Provide Servicing Support in Designing the Service Level Agreement to be signed between the Insurance Company and SBI highlighting the scope of services and timeline. However, the Bank may enlarge or modify the scope of work at any point of time depending upon its need. 3. Bank may empanel more than one broking firm/company in its panel. Mere empanelment of the broking firm/company shall not entitle them to broking assignment by the Bank and Bank shall have the right to assign the Job to any of the empanelled broking firms/companies at its discretion. 4. The Broker firm should confirm that Insurance broking services will be free of cost to the Bank. 5. The empanelled Broking firm/ company shall sign an MOU having inter-alia a Non- Disclosure Clause, with the Bank. 6. Expression of Interest needs to be submitted in hard copy in a sealed envelope. Proposals received by facsimile shall be treated as invalid and shall be rejected. Only detailed complete proposals in the form indicated, received within the closing time and date, shall be taken as valid.
-4- III. SHORTLISTING OF CONSULTANTS 1. Upon receipt of applications (EOI) the same shall be scrutinized and evaluated by the Bank. The Bank will shortlist/ select broking firms/companies as per parameters given in Annexure A (Part A). 2. The brokers qualifying under Part (A) only will be eligible for evaluation under (Part B). 3. The selection of broking firm is entirely at the discretion of the Bank. Mere empanelment shall not entitle the broking firm the right to assignment of business to the firm/ company. 4. The Bank also reserves the right to accept or reject any or all applications without assigning any reason whatsoever. 5. Only the top 5 brokers based on overall score obtained by them in parameters as per Group A, of Annexure A (Part B) will be shortlisted. 6. The shortlisted firms will be required to make a presentation before a Consultancy Selection Committee (CSC), which will recommend for engagement/ empanelment after taking overall view on them. 7. During pre-qualification and evaluation of the proposals, the Bank may, at its discretion, ask bidders for clarifications on their proposal. The respondents are required to respond within the time frame prescribed by the CSC. 8. Bidders are not permitted to modify, substitute, or withdraw proposals after its submission. 9. The tenure of the empanelment of the Insurance Broking Firm/Firms would be two Policy years, subject to annual review. However, the Bank will have discretion to discontinue the services of the selected brokers, if the Bank deemed fit at any point of time during the Policy period. IV. DISQUALIFICATIONS: SBI may at its sole discretion and, at any time during the evaluation of proposal, disqualify any bidder, if the bidder has made misleading or false representations in the forms, statements and attachments submitted in proof of the eligibility requirements, failed to provide related clarifications, when sought or declared ineligible by the Government of India/State/UT Government for corrupt and fraudulent practices or blacklisted.
The EOI should be submitted with a covering letter enclosing documents/ information indicated below and the declaration, signed by the authorized Signatory with Seal of the Company. All pages are required to be signed -5- List of documents/information to be submitted along with Expression of Interest (EOI) i. Copy of Certificate of incorporation, Memorandum and articles of association, details of Registered Office, Address for communication, key contact person etc. ii. Copy of Original license issued by IRDA while granting the license and proof of renewal of license. iii. Brief write up about the firm/company furnishing the information, on number of years in operation, i.e. License Issuance/ Renewal Date(s). iv. A copy each of audited balance sheet of the last three years. v. Number of Corporate Clients along with copies of engagement letters, if any given, by PSU Banks or Private Banks. vi. Details of Premium Placement during last 3 years. vii. Declaration as annexure B. viii. Copy of resolution authorizing the person to sign the papers on behalf of the company. ix. Information on format as annexure A. x. Supporting documents for information given in Annexure A. xi. Any other document in support of the application which the firm/company may deem fit. V. SUBMISSION OF EOI a. The last date for submission of proposal (bid) is 12:30 hrs on 26 th December 2018. Proposal received after that may be rejected. b. The bid should be signed by the bidder or any person duly authorized to bind the bidder to the contract. The signatory should give a declaration and through authenticated documentary evidence establish that he/she is empowered to sign the tender documents and bind the bidder. All pages of the tender documents except company brochures, if any, are to be signed by the authorized signatory. c. The bid should contain no interlineations, erasures or over-writings except as necessary to correct errors made by the bidder. In such cases, the person/s signing the bid should authenticate all such corrections by putting his / her full signature. d. The bidder is expected to examine all instructions, forms, terms and conditions and technical specifications in the Bidding Documents. Failure to furnish any information required by the Bidding Documents or submission of a bid not
substantially responsive to the Bidding Documents in every respect will be at the Bidder s risk and may result in rejection of the bid. e. No columns of the tender should be left blank. Offers with insufficient information and Offers which do not strictly comply with the stipulations given above, are liable for rejection. f. Interested insurance broking firms/companies are required to submit their proposal (EOI) giving full particulars about their organization, technical personnel in the organization, competence and experience in this line of business to the following address. Deputy General Manager (Govt. & institutional Tie ups) State Bank of India, Personal Banking Business Unit, 13 th floor, Corporate Centre, State bank Bhavan. Madame Cama Road, Nariman Point, Mumbai - 400021. Contact Person: i. Shri Ajay Kumar Jha, Dy. General Manager (G&ITU) Phone No: 022-22741360 email id: dgm.citu@sbi.co.in ii. Dewesh Kumar Verma, Assistant General Manager (G&ITU) Phone No. 022-22741302; 7738038966 email id: dewesh.k.verma@sbi.co.in
ANNEXURE - A PART A: QUALIFYING CRITERIA FOR BECOMING ELIGIBLE TO PARTICIPATE IN BIDDING I. The Firm/Company should have been in existence in India for a period of at least 7 years as on 31/03/2018, in the area of Insurance broking, i.e. must be registered/ issued license by Insurance Regulatory and Development Authority (IRDA) for the said purpose prior to 01/04/2011. II. The Insurance Broking Firm should have brokered at least one Group Personal Accident Policy, which covers a minimum of 20,000 lives during F.Y. 2017-18. III. The Insurance Broking Firm should have brokered Group Personal Accident Policy with minimum premium of Rs. 5 cr. during F.Y. 2017-18. IV. The Firm/Company should not have incurred loss in the last 3 financial years (i.e. 2015-16, 2016-17 and 2017-18). V. The Firm/Company should not be a defaulter of any Bank/FIs. PART B: SCORING PARAMETERS Sl. Criterion Score Total GROUP A 1. Number of years since license given by IRDA as on March 31, 2018 MAX Between 3 to 6 Years 1 Above 7 & upto 10 years 3 Above 10 years 5 5 2. Number of Qualified employees Upto 20 2 More than 20 & upto 50 3 More than 50 5 5 3. Networth as on 31.03.2018 upto Rs. 10.00 cr 1 Above 10.00 cr and upto Rs. 30.00 cr 3 Above 30.00 cr 5 5 4. Average Net Profit in last three Financial years (i.e. 2015-16, 2016-17 & 2017-18) Upto 2 crores 2 Above 2 cr. & upto 5 cr. 3 Above 5 cr. and upto 10 cr. 4 Above 10 Cr. 5 5 5. Number of States where Firm is having point of presence (office/ employees) Upto 5 2 More than 5 and upto 10 3 More than 11 and upto 20 4 More than 20 5 5
6. Average Group Personal Accident Premium placed for Corporate Clients (Rs. in crore) during last three financial years (i.e. 2015-16, 2016-17 & 2017-18) Upto Rs. 10 crore 4 More than Rs. 10 cr & Upto Rs. 25 crore 6 More than Rs. 25 cr & up to 50 8 More than 50 crore 10 10 7. Average number of Corporate/Institutional Group Personal Accident Insurance Policy brokered during the last three financial years (i.e. 2015-16, 2016-17 & 2017-18) Two (2) Policies 2 Three (3) Policies 3 Four (4) Policies 4 Five (5) Policies & above 5 5 8. Number of GPA policies for salary accounts brokered for Banks during the F.Y. 2017-18 Upto 2 3 More than 2 and upto 4 4 More than 5 5 5 9. Average number of Individuals covered under GPA during the last three financial years (i.e. 2015-16, 2016-17 & 2017-18) 10. More than 50000 and upto 5 lakh 4 More than 5 lakh and upto 10 lakh 6 More than 10 lakh and upto 20 lakh 8 More than 20 lakh 10 10 Average amount of claims got lodged under Group Personal Accident Policies (Rs. in Crores) during last three financial years (i.e. 2015-16, 2016-17 & 2017-18) Upto 10 cr. 2 More than 10 cr. & up to 20 cr. 5 More than 20 cr. & up to 30 cr 8 More than 30 cr 10 10 11. Average number of claims got settled under GPA during last three financial years (i.e. 2015-16, 2016-17 & 2017-18) Upto 100 2 More than 100 up to 200 5 More than 200 up to 400 8 More than 400 up to 700 10 10 GROUP B TOTAL MARKS (Group A) 75 11. Points on Presentation by Broking firm 25 25 TOTAL MARKS 100 NOTE: Top 5 brokers in descending order of the scores awarded to them under Group A will be shortlisted to make presentation before the selection committee. Out of the shortlisted 5 brokers, Bank will empanel 3 or more brokers. The banks deserves the right to select one or more barkers out of the empaneled brokers for the GPA policy.
ANNEXURE - B DECLARATION CERTIFICATE DECLARATION I UNDERTAKING: The following declaration shell be submitted by the bidder, at the time of submission of bid: "We hereby declare that there is no case with the Police/ Court/ IRDA/ SEBI/Regulatory authorities against the proprietor/ firm/ partners/ company/ Directors. Also, they are not defaulter to any Bank or Financial/ Institutions. We have not been suspended/ delisted/ blacklisted by any other Govt. Ministry /Department / Public Sector Undertaking/ IRDA/ SEBI/ Autonomous Body/ Financial Institution/ Court etc. We certify that neither our firm nor any of the partners is involved in any scam or disciplinary proceedings settled or pending adjudication. We also hereby declare that all information, material to the decision of empanelment has been disclosed in this document and nothing has been concealed and/or withheld. We hereby undertake and confirm that we have understood the scope of work properly and shall comply with the terms of engagement. Sd/- Signature of the Authorized Signatory with Seal"
ANNEXURE- C PARTICULARS OF THE INSURANCE BROKING FIRMS Sl. Particulars Responses Supporting Documents 1. Name of the Company Copy of Certificate under Companies Act 2. Registered Office Address --do- 3. Type of License Copy of original license issued by IRDA while granting the license and confirmation that the entity can do business 4. Number of years in operation in India i.e. License Issuance/Renewal Date 5. Employee Strength (As on March 31, 2018) License Copies (including renewal) 6. Net profit Audited Balance Sheets 2017-18 2016-17 2015-16 7. Paid up Capital (Rs. in Cr.) (As per latest Audited Balance Sheet but not earlier than March 31, 2018) 8. No. of points of presence (As on March 31, 2018) 9. Details of Policies covering more than 50,000 lives 10. No. of Group Personal Accident insurance Policies (As on March 31, 2018) with minimum premium of Rs. 5.00 crore 11. Total Group Personal Accident Insurance Premium Placement for Corporate Clients During last 3 financial years (in cr.) 12. Average number of Corporate/Institutional Group Personal Accident Insurance Policies brokered during the last three financial years 13. Number of GPA policies for salary accounts brokered for Banks during the F.Y. 2017-18 2015-16: 2016-17: 2017-18: 2015-16: 2016-17: 2017-18: Audited Balance Sheets
14 Average number of Individuals covered under GPA during the last three financial years 15. Average number of claims got settled under GPA during last three financial years 16. Average amount of claims got lodged under Group Personal Accident Policies during last three financial years (Rs. in Crores) 17. Details of Public Sector Companies being served as your client for Group Personal Accident Insurance Policies 18. Percentage of claims settled to claims lodged (number wise as well as amount wise) during FY 2017-18 under Group Personal Accident Insurance Policies handled by you. 2015-16: 2016-17: 2017-18 2015-16: 2016-17: 2017-18 2015-16: 2016-17: 2017-18